Mortgage REIT: Acceptable Risks "Do Not Exist"
Dynex Capital is a mortgage REIT. Going through this weeks press release produced these comments by Thomas B. Akin, Chairman of the Board of Directors.
" With respect to reinvestment strategies for our capital, our viewpoint remains the same, that acceptable risk-adjusted returns do not exist in mortgage assets today, and we will continue only to invest in high-credit quality, very short-duration assets. We are focused, however, on our longer-term investment strategies, and...to avoid putting our balance sheet at undue risk in what likely will be a volatile environment over the next twelve months."
That is what Fannie Mae is saying in it's corporate communications. The firm recently sold off it's investment in another mortgage REIT, Bimini Mortgage Management as well as the manufactured housing segment.